Stick with talented managers of low-cost funds

BOSTON (MarketWatch) -- Dan Wiener, editor of the Independent Adviser for Vanguard Investors newsletter, says that investors should look for "terrific managers with low-cost funds ... and should stick with them," noting that tilting a portfolio toward strong asset classes is good, so long as the move doesn't put the whole portfolio off-kilter.

In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Wiener said that "controlling risk is the name of the game" and said an asset-allocation plan is a big part of risk management.

However, he also said that he would allow a portfolio to take some tilt toward hotter asset classes, not abandoning cold categories altogether but fattening up on the juiciest parts of the market.

Wiener put a buy rating on Hartford Global Health
HGHAX, -1.36%
which he likes as an alternative to Vanguard Health Care
VGHCX, -1.60%
because the latter is closed to new investors. He recommended buying Vanguard Emerging Markets
VEIEX, +0.16%
and noted that it has so much exposure to energy companies that he would pull out of Vanguard Energy
VGENX, -0.81%
to make the emerging-markets play.

Jaffe's radio show regularly features expert reviews of stocks and mutual funds suggested by MarketWatch readers; to request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to Chuck Jaffe.

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